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An investment of $105 generates after-tax cash flows of $30 in Year 1, $90 in Year...

An investment of $105 generates after-tax cash flows of $30 in Year 1, $90 in Year 2, and $150 in Year 3. The required rate of return is 20 percent. The net present value is closest to

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Answer #1

Net present value = -$105 + $30/1.20 + $90/1.202 + $150/1.203

Net present value = $69.31

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